Case Law Details
Yogender Kumar Vs ITO (ITAT Delhi)
Introduction: In the case of Yogender Kumar Vs ITO, the Income Tax Appellate Tribunal (ITAT), Delhi, upheld the decision to impose a late filing fee on the assessee for a delay in filing the Tax Deducted at Source (TDS) statement. The assessee had purchased an immovable property and while the TDS was deducted and deposited as required, the filing of the TDS statement was delayed, resulting in a late filing fee.
Analysis: The case centers on the consequences of a delayed filing of the TDS statement, under Section 234E of the Income-tax Act, 1961. In this instance, the assessee faced a significant fee of Rs. 1,59,200. This appeal has reaffirmed the importance of timely compliance with the Act’s provisions. The tribunal also pointed out that the assessee was absent on multiple occasions during the proceedings and that their representations were mainly for adjournments.
This case also brings to light the ramifications of amendments made under Section 200A, effective from June 1, 2015. The ruling stressed that these changes allow the fee under Section 234E to be computed at the time of return processing and allow the issuance of an intimation specifying the same, payable by the deductor.
Conclusion: The tribunal’s dismissal of the assessee’s appeal serves as a stark reminder of the responsibility to comply with the Income Tax Act’s TDS provisions and the consequences of non-compliance. It underscores the importance of timely filing and the potentially high cost of failure to do so. It also reinforces the legal and procedural ramifications of amendments made under Section 200A and the implications of these for TDS provisions. The judgment confirms that the charges applied were in line with the established law and precedent.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal filed by the assessee is against the order of learned Commissioner of Income-Tax(Appeals)- (National Faceless Appeal Centre, Delhi (NFAC), Delhi vide Order No. ITBA/NFAC/S/250/2022- 23/1042534018 (1)dated 05.04.2022 against the order under Section 200A(1) read with section 194 IA of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 13.04.2019 passed by ACIT, CPC-TDS, Ghaziabad for financial year 2018-19 relevant to assessment year 20 19- 20
2. The solitary ground taken by the assessee is in respect of levy of fees of Rs. 1,59,200 under Section 234E of the Act for failure to file return of TDS under Section 201A(1) read with section 194IA.
3. Brief facts of the case are that assessee had purchased immovable property on which TDS @ 1% under Section 194IA was required to be deducted while making payment to the seller and to be deposited in the government account. Assessee had deducted the TDS and deposited it into the government account, however, there was a delay in filing of TDS statement in Form 26QB. Owing to this delay in filing of TDS statement, learned AO levied a late filing fee of Rs. 1,59,200 under Section 234E of the Act. Aggrieved, assessee went in appeal before the learned CIT(A) who confirmed the late filing fee imposed on the assessee.Aggrieved, assessee is in appeal before the Tribunal.
4. Before us, none represented the assessee. From the perusal of the material on record, we note that on last several occasions, nobody has represented the assessee and wherever there was a representation, it was for the purpose of seeking an adjournment. Further, we note that the issue involved in the present appeal is no longer res integra as the period for which the fee has been imposed is after the date of 01.06.20 15 where from an amendment was brought in under Section 200A of the Act. With the ab le assistance of learned Sr. DR and taking into consideration the material available on record, we are inclined to take up the matter ex parte qua the assessee.
5. From the statement of facts contained in Form 35 filed before the learned CIT (Appeals), we had drawn the facts stated above. There was a delay in deduction and payment of TDS by the assessee. This delay resulted in delayed filing of TDS statement by the assessee because of which late filing fee under Section 234E was imposed by the learned AO. The period involved for the said transaction is in the financial year 2018- 19 relevant to assessment year 20 19-20.
6. It is pertinent to mention that assessee had the responsibility to comply with the applicable provisions of the Act. Under the Act, provisions of section 234E are attracted when there is default in furnishing of TDS statement. Provisions of section 234E came into force w.e.f. 01.07.2012. Further, provisions of section 200A(1)(c), (d) and (f) came into force w.e.f. 01.06.2015 whereby it was provided that the fee under Section 234E of the Act can be computed at the time of processing of return and intimation can be issued specifying the same, payable by the deductor as fee under Section 234E.The issue in the present appeal was dealt with by the Hon’ble High Court of Gujarat in the case of Rajesh Kourani Vs. Union of India 83 taxmann.com137 who after distinguishing the decision in the case of Fatheraj Singhvi Vs. Union of India 73 taxmann.com 252 (Kar.) observed that section 234E was introduced to make TDS provisions stringent which is a charging section and section 200A on the other hand is a machinery provisions for making prima facie adjustment. Considering the facts on record and the judicial precedents stated above, we find that late filing fee imposed by the learned AO in respect of delayed filing of TDS statement which is after the effective date of 01.06.2015 for the amendment brought in section 200A of the Act, we do not find any reasons to interfere with the finding of learned CIT(A) who had confirmed the fee imposed by the learned AO under Section 234E of the Act. Accordingly, appeal of the assessee is dismissed.
7. In the result, appeal of the asses see is dismissed.
Order is pronounced in the open court on 4th July,2023.
